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HomeMy WebLinkAbout2013-07-22 13-256 ORDERCOUNCIL ACTION Item No. 13-256 Date: July 22, 2013 Item/Subject: ORDER, Authorizing Execution of an Amendment to Lease Agreement with Stillwater Realty, LLC — 890 Hammond Street Responsible Department: Community and Economic Development Commentary: The City owns real property located at 890 Hammond Street. Stillwater Realty, LLC is the owner of a building at this location and leases the land from the City. Stillwater Realty, LLC wishes to purchase the land on which their building is located, pursuant to the City -owned property disposition policy which allows for the purchase of leased land given the satisfaction of certain terms and conditions including the creation of investment equal to the value of the lost lease revenue. The land is subject to a deed restriction prohibiting its sale. This Order, if approved, will authorize the City Manager to take steps to obtain the release of the deed restriction and to execute an Amendment to the lease with Stillwater Realty, LLC to provide for an option to purchase the property if the City gets the release of the deed restriction on terms that are consistent with the City's policy for the sale of leased land. This matter was discussed and recommended for approval by the Business and Economic Development Committee at its July 1, 2013 meeting. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for Passage First Reading Referral Department Head Page _ of _ City Manager Finance Director Solicitor 13-256 d JULY 22, 2013 Assigned to Councilor Nealley f CITY OF BANGOR �aR4lED.F6 �- r (TITLE.) ORDER, Authorizing Execution of an Amendment to Lease Agreement with Stillwater Realty, LLC — 890 Hammond Street WHEREAS, the City is the owner of real property located at 890 Hammond Street; and WHEREAS, Stillwater Realty, LLC is the owner of a building at this location and leases the land from the City; and WHEREAS, Stillwater Realty, LLC wishes to purchase the land on which their building is located; and WHEREAS, the real estate at 890 Hammond Street is subject to a deed restriction prohibiting its sale; and WHEREAS, the City -owned property disposition policy allows for the purchase of leased land given the satisfaction of certain terms and conditions; and By the City Council of the City of Bangor. ORDERED, THAT Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute all documents necessary to obtain the release from the deed restriction prohibiting the sale of the land at 890 Hammond Street consisting of approximately 0.46 acres (Tax Map 2, Lot 10) and to execute an amendment to the lease between the City of Bangor and Stillwater Realty to provide for an option to purchase. Said amendment to the lease for an option shall provide for a sale price of $45,000.00 if able to be exercised prior to December 31, 2013 or a sale price as determined by an appraisal if exercised after December 31, 2013; shall be contingent upon documentation of additional taxable investment in the City of Bangor consistent with the requirements of the City's policy for sale of previously -leased properties, and such other terms and conditions as reasonable and appropriate and consistent with the requirements of the City's policy for sale of previously -leased properties. Said Amendment to lease shall be in final form as approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL July 22, 2013 Motion made and seonded for Passage Motion Doubted Vote: 5-3 Councilors Voting Yes: Blanchette, Civiello, Nealley, Sprague, Durgin Councilors Voting No: Baldacc!, Gallant, Longo P s CITY CL RR